Analyst Presentation

Petroleum Refiners Marsden Point, Private Bag 9024, Whangarei, New Zealand.
Telephone +64-9-432 8311, Website www.refiningnz.com


ANALYST PRESENTATION

28
th
FEBRUARY 2017


The attached presentation was made to Analysts on Tuesday 28
th
February 2017.


1. Results – 2016 Performance


2. Strategic Update



D.M. Jensen
Chief Financial Officer

---

1
Analysts Briefing
28 February 2017

2
This presentation contains forward looking statements concerning the financial condition, results and operations of The New Zealand Refining Company
Limited (hereafter referred to as “Refining NZ”).
Forward looking statements are subject to the risks and uncertainties associated with the refining environment, including price and foreign currency
fluctuations, production results, demand for Refining NZ’s services and other conditions.
Forward looking statements are based on management’s current expectations and assumptions and involve known and unknown risksand uncertainties
that could cause actual results, performance or events to differ materially from those expressed or implied in these statements.
Forward looking statements include among other things, statements concerning the potential exposure of Refining NZ to market risk and statements
expressing management’s expectations, beliefs, estimates, forecasts, projections and assumptions.
Forward looking statements are identified by the use of terms and phrases such as “anticipate”, “believe”, “could”, “estimate”, “expect”, “goals”,
“intend”, “may”, “objectives”, “outlook”, “plan”, “probably”, “project”, “risks”, “seek”, “should”, “target”, “will” and similarterms and phrases.
Readers should not place undue reliance on forward looking statements. Forwardlooking statements should be read in conjunction with Refining NZ’s
financial statements released with this presentation.
In light of these risks, results could differ materially from those stated, implied or inferred from the forward looking statements contained in this
announcement. Refining NZ does not guarantee future performance and past performance information is for illustrative purposes only.
Except as required by law or regulation (including the NZX Main Board Listing Rules), Refining NZ undertakes no obligation to provide any additional or
updated information whether as a result of new information, future events or results or otherwise.
Forward looking figures in this presentation are unaudited and may include non-GAAP financial measures and information. Not all of the financial
information (including any non-GAAP information) will have been prepared in accordance with, nor is it intended to comply with: (i) the financial or
other reporting requirements of any regulatory body; or (ii) the accounting principles generally accepted in New Zealand or any other jurisdiction with
IFRS. Some figures may be rounded and so actual calculation of the figures may differ from the figures in this presentation.”
Each forward looking statement speaks only as of the date of this announcement, 28 February 2017.
Disclaimer

3
FY 15FY 16
TRCF, rolling 12-month
[1]
1.320.51
LTIF, rolling 12-month
[1]
0.100.25
Tier 1 and 2 process safety incidents(#)51
Releases outside consent(#)25
Throughput (million barrels)42.642.7
Operational availability97.7%96.9%
Gross RefineryMargin (US$/barrel)9.206.47
Free cash flow (NZ$m)
[2]
13947
Net profit/(loss) after tax–Group (NZ$m)15147
Crude price (US$/barrel)$52$44
Exchange rate (US$)0.700.70
Health
and safety
DELIVERING
WORLD CLASS
PERF ORMANCE
Environmental
DELIVER A
WORLD CLASS
PERF ORMANCE
Quality and
reliability
BUILD ON
ELEMENT S OF OUR
CUSTOMER
PROMISE
Competitiveness
IMPROVE OUR
A great year...
...strong operational performance and free cashflow
[1] per 200,000 hours
[2] Free cas h fl ow cal cul ated as operati ngcas h fl owmi nus capi tal expendi tures

4
20152016Delta
Refining NZ Margin9.206.47-2.73
Uplift vs Singapore Dubai Complex4.453.22-1.23
- Freight-0.63
- Product Quality-0.53
- Plant Ava ilability-0.51
- Crude Cost and Yield0.43
Singapore Dubai Complex Margin4.753.25-1.50
- Crude price0.50
- Gasoline differential-1.00
- Diesel & jet fuel differential-1.00
Margin at top of historical average...
...TMH and short payback projects making a strong contribution
*
* The Si ngapore Compl ex Margi n i s cal culated us i ng Pl atts Dubai crude and Si ngapore product pri ces, VLCC frei ght to
Si ngapore, and the International Energy Agency’s Dubai complex refinery yields adjusted for fuel & l os s .
*

5
Strong net income delivery
Resulting in 6 cps final dividend
150.9
47.5
11.7
(65.5)
(89.9)
32.2
6.5
(5.3)
(6.9)
(27.9)
41.7
0
20
40
60
80
100
120
140
160
NZ$ million
NPAT
2015
Singapore
complex
margin
Depreciation
and finance
Other
costs
Ma rgin
uplift
Net TMH
contribution
Fee cap
and one-offs
Tax
NPAT
2016
RAP
Strategic
costs
Dividend considerations:
60% NPAT
21% end of year gearing
2018 capital intense shutdown

6
Key drivers and strategy unchanged for 2017
World class
Environmental
performance
High
Performance
culture
World class
Health &
Safety
Manufacturing
and supply
partner of choice
Competitive
Quality and
Reliability
Fue l emission
s ta ndards/
pe trol and diesel
s pe cification changes
(Euro 6+)
Offs hore
compe tition
Cl i mate change
Adva ntaged crudes
Auckl and growth,
EVs , hybri ds
Fue l oil
s pe cification
cha nges
(MARPOL VI )
Drivers
Strategy

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Source: Facts Global Energy (February 2017)
We expect continued support for refining margins
But... an immediate product overhang remains.....
New Zealand...
Asia Pacific...
Incremental CDU Capacity <
Incremental Products Demand
Incremental CDU Capacity >
Incremental Products Demand
•“Declining East of Suez surplus refining capacity is expected until beyond 2020.”
•“Hydrocracking margins are expected to continue strengthening to 2020”

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2017 focus areas
Safe operations
Post TMH optimisation
Short payback projects
Natural gas
Dredging
Pipeline capacity increase
Jet tank farm reconfiguration
Sulphur processing

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2017 profit and borrowings matrix
Capex (NZ$ mln)20172018
Retai nWas65-75110-120
Now78112
GrowWas1010
Now1010-30
USD
Exchange Rate0.500.550.600.650.700.750.80
GRM
USD
(68)(68)(68)(68)(68)(68)(68)
343343343343343343343
(30)(42)(53)(61)(68)(68)(68)
290307321333343343343
15(2)(15)(27)(37)(45)(53)
228250269285299311321
5939228(5)(15)(25)
176196218237254269282
10480594227153
131155176193210228243
1491209676594431
86115138158176190205
193161134111917459
4174101124144161176
23820217114512310487
(3)336490112131148
NPAT43 Production: (Barrels ('000's)
Borrowings89 Non Processing Fee Revenue, $m
94 Depreciation, $m
2.00
3.00
4.00
5.00
6.00
7.00
8.00
9.00

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Analysts Briefing
28 February 2017